The most prominent bet by billionaire Gautam Adani in the thriving media industry was announced on Tuesday by India’s Adani Group: its media unit will purchase a majority stake in NDTV.
In addition to making an open offer for a further 26% stake, Adani’s unit will indirectly acquire a 29.18% stake in New Delhi Television (NDTV). According to the statement, the open offer would be for 294 Indian rupees ($3.68) per NDTV share, valued 4.93 billion Indian rupees ($61.73 million). Adani had previously disclosed on Tuesday that it has paid 1.14 billion rupees to acquire Vishvapradhan Commercial Pvt Ltd (VCPL).
VCPL owns warrants of NDTV shareholder RRPR, and on Tuesday it exercised its right to convert those warrants into shares equal to 99.5% of RRPR. Leading media company NDTV runs three national news channels: NDTV India, NDTV Profit, and NDTV 24×7. In NDTV, RRPR owns a 29.18% stake.
In March of this year, Adani Group acquired a minority stake in Quintillion, a local digital business news site. According to a statement from Sanjay Pugalia, CEO of AMG Media Networks Limited, the NDTV acquisition will open the door for new age media on all platforms.
Mukesh Ambani, the chairman of the oil-to-telecom conglomerate Reliance Industries who also has a stake in India’s thriving media sector and controls Network18, is a rival of Gautam Adani. Adani Group has seven publicly traded firms that operate industries like running ports and airports, generating and transmitting electricity, and trading coal and gas.